The rating downgrade was based on a number of factors, including ETMC’s contraction in revenues and volumes, leading to a material downturn in financial performance in year-to-date fiscal year 2015 performance.
The downgrade is somewhat mitigated by a conservative debt structure and absence of any sizable derivatives.
The rating outlook remains negative, which reflects Moody’s expectations for weaker financial performance in FY 2015 and into FY 2016 given volume and revenue pressures.
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